Backend Category: Coronavirus

Withum Explains Why PPP Loan Forgiveness May Not Be Tax-Free

National accounting firm Withum shares information to help you understand the tax implications of the recent Internal Revenue Service (IRS) ruling addressing the proper treatment of improperly forgiven paycheck protection program (PPP) loans. The IRS ruled that the PPP loan forgiveness amount is not tax-free, even if the Small Business Administration (SBA) and the lender granted the borrower full loan forgiveness, if the taxpayer did not satisfy the factual requirements for loan forgiveness.

OSHA Officially Withdraws COVID-19 ETS

The Occupational Safety and Health Administration (OSHA) has withdrawn the COVID-19 Emergency Temporary Standard on vaccine mandates as an enforceable emergency temporary standard. OSHA remains committed to pursuing a proposed rule through the formal process. Both MCAA and the UA continue to strongly encourage the vaccination of workers against COVID-19.

BREAKING NEWS: Supreme Court Reinstates OSHA ETS Stay

Today the Supreme Court of the United States (SCOTUS) issued a decision regarding the highly controversial OSHA Emergency Temporary Standard (ETS) for COVID-19 vaccination.

SCOTUS granted the application for the stay blocking enforcement and progress of the ETS.

Regarding this nationwide stay of OSHA’s ETS for COVID-19 vaccination, SCOTUS holds that challengers to the rule are “likely to succeed on the merits” of their claims because the rule is broad enough to qualify as a “public health” mandate rather than an occupational standard.

They went on to say, “OSHA has never before imposed such a mandate. Nor has Congress.”

The full decision can be read here.

Watch for Updates As They Occur

MCAA will be closely monitoring SCOTUS and OSHA developments related to this issue and will communicate updates as they occur. In the meantime, questions may be addressed to MCAA’s Raffi Elchemmas.

Update on OSHA’s ETS on COVID-19

Today is the first day the Occupational Safety & Health Administration (OSHA) can begin enforcement of the planning and record keeping mandates in its Emergency Temporary Standard (ETS) on vaccine mandates.

The Supreme Court of the United States (SCOTUS) heard oral arguments of the appeal on January 7, 2022, but has not reached a determination. Multiple Justices expressed doubt over OSHA’s claim on a “clear” basis for the vaccine ETS. While the Supreme Court could issue a decision at any time, we do anticipate it happening before February 10, 2022, the compliance deadline for testing.

In the meantime, MCAA has provided you with all the tools to help your company comply today.

Compliance Tools

  • MCAA’s Updated Bulletin on OSHA’s COVID-19 ETS – The only changes to the bulletin are the new enforcement dates. This bulletin is a simple reference document for you.
  • The original MCAA Model COVID-19 Mandatory Vaccination Policy – This policy is for companies that require vaccines, but do not allow weekly testing and face covering use as an alternative.
  • The MCAA Model COVID-19 Vaccination, Testing and Face Covering Policy – This policy is for companies that require vaccines, or weekly testing and face covering use as an alternative to vaccines. It can also be easily tailored for use as your Mandatory Vaccination Policy for the companies that require vaccines, but do not allow weekly testing and face covering use as an alternative.

A Simple Record Keeping Tool

Additionally, to support the planning and record keeping deadline, TYFOOM, a member of MCAA’s Manufacturer/Supplier Council (M/SC), created an automated, simple, and easy process to reach all employees on a regular basis with an ETS survey.

OSHA Compliance Deadlines

January 10, 2022: all requirements except testing

February 9, 2022: Vaccines or Testing

Watch for Updates As They Occur

MCAA will be closely monitoring SCOTUS and OSHA developments related to this issue and will communicate updates as they occur. In the meantime, questions may be addressed to MCAA’s Raffi Elchemmas.

New Tool to Track and Report Vaccine and Testing for OSHA’s ETS on COVID-19

There have been many requests from MCAA members for a simple and easy way to track & report the Emergency Testing Standard (ETS) from OSHA for both the vaccine requirements and weekly testing. 

TYFOOM, a member of MCAA’s Manufacturer/Supplier Council (M/SC), created an automated, simple, and easy process to reach all employees on a regular basis with an ETS survey (examples attached).

For more information, please contact Tyfoom at customercare@tyfoom.com or call 801.717.1231 and mention that you are an MCAA member to obtain a 10% member discount.

As a reminder, unless ruled on by the Supreme Court, the most current OSHA compliance deadlines are:

  • January 10, 2022: All requirements except testing
  • February 9, 2022: Testing

If you have any questions, please contact MCAA’s Executive Director of Safety, Health, and Risk Management, Raffi Elchemmas, at raffi@mcaa.org

MCAA Offers Materials to Prepare You for OSHA’s ETS on COVID-19

The Occupational Safety & Health Administration (OSHA) will begin enforcement of its Emergency Temporary Standard (ETS) on vaccine mandates in early 2022 barring an emergency stay from the Supreme Court of the United States (SCOTUS). MCAA’s Safety Bulletin on the ETS, the MCAA Model COVID-19 Mandatory-Vaccination Policy, and NEW MCAA Model COVID-19 Vaccination, Testing and Face Covering Policy outline what needs to be done to be compliant with the ETS.

It is important for all MCAA members to begin making every possible attempt to comply with the standard, and carefully document every part of every attempt made to comply.

MCAA offers three items, available via the buttons below, that may be useful to you:

  • MCAA’s Updated Bulletin on OSHA’s COVID-19 ETS – The only changes to the bulletin are the new enforcement dates. This bulletin is a simple reference document for you.
  • The original MCAA Model COVID-19 Mandatory Vaccination Policy – This policy is for companies that require vaccines, but do not allow weekly testing and face covering use as an alternative.
  • The MCAA Model COVID-19 Vaccination, Testing and Face Covering Policy – This policy is for companies that require vaccines, or weekly testing and face covering use as an alternative to vaccines. It can also be easily tailored for use as your Mandatory Vaccination Policy for the companies that require vaccines, but do not allow weekly testing and face covering use as an alternative.

OSHA Compliance Deadlines

January 10, 2022: all requirements except testing

February 9, 2022: testing

OSHA “will not issue citations for noncompliance with the standard’s testing requirements before February 9, so long as an employer is exercising reasonable, good faith efforts to come into compliance with the standard.”

OSHA released the following statement:

“To account for any uncertainty created by the stay, OSHA is exercising enforcement discretion with respect to the compliance dates of the ETS. To provide employers with sufficient time to come into compliance, OSHA will not issue citations for noncompliance with any requirements of the ETS before January 10 and will not issue citations for noncompliance with the standard’s testing requirements before February 9, so long as an employer is exercising reasonable, good faith efforts to come into compliance with the standard. OSHA will work closely with the regulated community to provide compliance assistance.”

Watch for Updates As They Occur

MCAA will be closely monitoring SCOTUS and OSHA developments related to this issue and will communicate updates as they occur. In the meantime, questions may be addressed to MCAA’s Raffi Elchemmas.

ETS BREAKING NEWS – 6th Circuit Dissolved the Stay of the OSHA ETS, Emergency Stay Application Filed, New Compliance Deadlines

A three-judge panel of the 6th Circuit Court of Appeals dissolved the stay of the Occupational Safety & Health Administration (OSHA) Emergency Temporary Standard (ETS) on vaccine mandates and testing on December 17, 2021. An emergency stay application has since been filed with the Supreme Court of the United States (SCOTUS) and OSHA has announced new compliance deadlines for implementation and enforcement of the ETS.

6th Circuit Dissolved Stay on OSHA ETS

The court order does not mention deadline extensions, it simply grants “the Government’s motion and DISSOLVE[S] the stay issued by the Fifth Circuit.”  MCAA has filed a request with OSHA to extend enforcement deadlines so all employers can have time to develop the appropriate plans.

OSHA Announces New Compliance Deadlines

January 10, 2022: all requirements except testing

February 9, 2022: testing

OSHA “will not issue citations for noncompliance with the standard’s testing requirements before February 9, so long as an employer is exercising reasonable, good faith efforts to come into compliance with the standard.”

OSHA released the following statement: 

“To account for any uncertainty created by the stay, OSHA is exercising enforcement discretion with respect to the compliance dates of the ETS. To provide employers with sufficient time to come into compliance, OSHA will not issue citations for noncompliance with any requirements of the ETS before January 10 and will not issue citations for noncompliance with the standard’s testing requirements before February 9, so long as an employer is exercising reasonable, good faith efforts to come into compliance with the standard. OSHA will work closely with the regulated community to provide compliance assistance.”

Impact on MCAA Members

Unless SCOTUS acts, MCAA members with over 100 workers must require them to be vaccinated or tested weekly by the new compliance deadlines.

MCAA Offers Compliance Resources

MCAA’s Safety Bulletin on the ETS and the MCAA Model COVID-19 Mandatory-Vaccination Policy outline what needs to be done to be compliant with the ETS.

Watch for Updates As They Occur

MCAA will be closely monitoring SCOTUS and OSHA developments related to this issue and will communicate updates as they occur. In the meantime, questions may be addressed to MCAA’s Raffi Elchemmas.

OMB and SFW Issue Updated COVID-19 Workplace Safety Guidance for Federal Contractors and Subcontractors

The Safer Federal Workforce (SFW) Task Force issued updated Frequently Asked Questions based on Office of Management and Budget (OMB) guidance on non-enforcement of vaccination on Federal contracts and subcontracts. The guidance, which applies to those that had been governed by the vaccination mandates in EO 14042, comes after recent court decisions stayed the effectiveness of those rules pending further legal challenges.

Below is the updated guidance from the OMB and the SWF:

Regarding Applicable Court Orders and Injunctions: The Office of Management and Budget has issued guidance on implementing requirements of Executive Order 14042 while ensuring compliance with applicable court orders and injunctions, including those that are preliminary and may be supplemented, modified, or vacated, depending on the course of ongoing litigation.

  • For existing contracts or contract-like instruments (hereinafter “contracts”) that contain a clause implementing requirements of Executive Order 14042: The Government will take no action to enforce the clause implementing requirements of Executive Order 14042, absent further written notice from the agency, where the place of performance identified in the contract is in a U.S. state or outlying area subject to a court order prohibiting the application of requirements pursuant to the Executive Order (hereinafter, “Excluded State or Outlying Area”). In all other circumstances, the Government will enforce the clause, except for contractor employees who perform substantial work on or in connection with a covered contract in an Excluded State or Outlying Area, or in a covered contractor workplace located in an Excluded State or Outlying Area.
  • Currently Excluded States and Outlying Areas: All of the United States and its outlying areas, including:
    1. The fifty States;
    2. The District of Columbia;
    3. The commonwealths of Puerto Rico and the Northern Mariana Islands;
    4. The territories of American Samoa, Guam, and the United States Virgin Islands; and
    5. The minor outlying islands of Baker Island, Howland Island, Jarvis Island, Johnston Atoll, Kingman Reef, Midway Islands, Navassa Island, Palmyra Atoll, and Wake Atoll.
  • NOTE: Federal agency COVID-19 workplace safety protocols for Federal buildings and Federally controlled facilities still apply in all locations. Contractor employees working onsite in those buildings and facilities must still follow Federal agency workplace safety protocols when working onsite.

Legislative & Regulatory Update

Legislative and regulatory developments are picking up pace in Washington, DC, in advance of the Congressional recess. Key issues of interest to MCAA members include vaccination requirements, clean energy, electric vehicle tax credits, and revised Davis-Bacon regulations.

Vaccination Requirements On Hold

The Biden Administration’s vaccination mandates for employees in firms with more than 100 employees, and Federal contractors and subcontractors are now all on hold in the wake of invalidating court decisions and OSHA regulatory action.

MCAA has filed comments with OSHA, seeking a measured re-implementation of the OSHA Emergency Temporary Standard (ETS) on COVID-19 if a supervening court decision in the Sixth Circuit Court of Appeals would reinstate the rule by lifting the stay on enforcement before a full decision on the merits of the legal arguments. So, until further court action, the vaccination requirements remain in public policy “purgatory,” awaiting further judicial action.

The Senate passed a resolution of disapproval of the vaccination mandates in the OSHA ETS by a vote of 52 to 48 this week (Senators Joe Manchin (D-WV) and Jon Tester (D-MT) broke party lines and voted for the resolution). Similar passage in the House is judged very unlikely. It is even less likely that the President would sign such a resolution, if passed, condemning his own action.

New Clean Energy Executive Order Announced

President Biden released a Clean Energy Executive Order on December 8, 2021, containing a broad scope of administrative actions that “…. demonstrates how the United States will leverage its scale and procurement power to lead by example in tackling the climate crisis. The Executive Order will reduce emissions across federal operations, invest in American clean energy industries and manufacturing, and create clean, healthy, and resilient communities. The President is building on his whole-of-government effort to tackle the climate crisis in a way that creates well-paying jobs, grows industries, and makes the country more economically competitive.”

Among the many elements of the initiative, several below impact the construction industry:

Transition federal infrastructure to zero-emission vehicles and energy efficient buildings powered by carbon-pollution-free electricity. … The federal government will work with utilities, developers, technology firms, financiers and other to purchase electricity produced from resources that generate no carbon emissions, including solar and wind, for all its operations by 2030. … With the scope and scale of this electricity demand, the federal government expects it will catalyze the development of at least 10 gigawatts of new American clean electricity production by 2030, spurring the creation of new union jobs and moving the country closer to achieving a carbon pollution-free electricity sector by 2035.”

“Modernize the federal building portfolio to reach net-zero emissions by 2045, including a 50 percent reduction in building emissions by 2031. The federal government will work across existing real property and during new building construction and major renovations to increases water and energy efficiency, reduce waste, electrify systems, and promote sustainable locations for federal facilities to strengthen the vitality and livability of the communities in which federal facilities are located. Additionally, the Biden-Harris Administration will implement the first-ever Federal Building Performance Standard and will use performance contracting to improve buildings with no up-front costs.” 

“Make federal agencies more adaptive and resilient to the impacts of climate change, and increase the sustainability of federal supply chains, achieving net-zero emissions from federal procurement by 2050. The companies that supply the federal government are critical partners in achieving our climate goals and growing the economy and American jobs. Cutting emissions from the federal government’s procurement also means buying materials with a lower carbon footprint. The federal government will launch a “buy clean” initiative for low-carbon materials and prioritize the purchase of sustainable products, such as products without added perfluoroalkyl or polyfluoroalkyl substances (PFAS). Through these actions, the federal government will provide a large and stable signal to the market for sustainable and low-carbon goods made in America, advancing America’s industrial capacity to supply the goods and materials for the future while growing good jobs for American workers.

Electric Vehicle Tax Credits Under Review

The Senate parliamentarian is considering whether the Administration’s proposal to add $4,500 to the $7,500 tax credit for the purchase of electric vehicles that are assembled by domestic US union labor is appropriate for inclusion in the Build Back Better reconciliation proposal pending in Congress.

Revised Davis-Bacon Regulations Inching Forward

The long-awaited proposal to revamp the US Department of Labor’s (DOL) Wage and Hour Division regulations implementing the Davis-Bacon Act took the final step in the regulatory process. On December 3, 2021, DOL sent the regulatory proposal to the Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA) for a final look-through.

MCAA commented on those regulatory proposals earlier this year, seeking changes in peak week reporting and asking for a review of the 50% threshold for prevailing wage determinations. These changes are of consequence now as the infrastructure legislation will bring a broad expansion of Davis-Bacon projects across all markets covered by the measure.

MCAA will continue to monitor legislative and regulatory actions and provide updates as appropriate. In the meantime, questions about these activities can be directed to John McNerney.

MCAA Offers Materials to Prepare You in the Event the Stay on OSHA’s ETS on COVID-19 Is Lifted

The Occupational Safety & Health Administration (OSHA) issued an Emergency Temporary Standard (ETS) on COVID-19 on November 5, 2021. While the standard has been temporarily stayed by the Fifth Circuit, MCAA wants to help mechanical construction, service, and fabrication shop employers prepare in the unlikely event the stay is temporarily lifted and OSHA decides to initiative enforcement. To that end, we’ve prepared this Safety Bulletin offering a quick overview of potential impacts and a Model COVID-19 Mandatory Vaccination Policy. Both are now available free to members as a benefit of membership.

MCAA is closely monitoring the daily changes and legal challenges to the ETS and while we don’t believe the stay will be lifted anytime soon, we want you to be prepared just in case.

If you have questions, please contact Raffi Elchemmas, MCAA’s Executive Director of Safety, Health and Risk Management.

5th Circuit Court Issues New Order Continuing Stay

On Friday, November 12, 2021, the United States Court of Appeals for the Fifth Circuit continued its stay on the implementation of the OSHA Emergency Temporary Standard (ETS) on vaccine mandates and testing pending a full review of the request for a permanent injunction. It also directed OSHA to “take no steps to implement or enforce the mandate until further court order.” MCAA will continue to provide updates as the situation evolves.

OSHA ETS on COVID-19 Stayed, Delaying Enforcement

On November 6, 2021, the attorneys general in ten states (Alaska, Arizona, Arkansas, Montana, Nebraska, New Hampshire, North Dakota, South Dakota, Wyoming, Iowa) sued the Biden administration over the Occupational Safety & Health Administration (OSHA) Emergency Temporary Standard (ETS) on COVID-19 that would have been effective immediately. As anticipated, the ETS has been stayed by the 5th Circuit Court of Appeals. MCAA members won’t have to worry about enforcement until the courts hear, and rule on, the lawsuits.

SFW Task Force Provides Additional COVID-19 Workplace Safety Guidance for Federal Contractors and Subcontractors

The Safer Federal Workforce (SFW) Task Force issued more detailed compliance guidance for direct Federal prime contractors and subcontractors performing on direct Federal contracts subject to the COVID-19 employee vaccination mandates under the Biden Administration’s Executive Order 14042. Below is a MCAA summary of the “new” Frequently Asked Question guidance issued on November 1, 2021. They are marked “New” on the SFW Task Force website linked below.

Compliance

Q: What steps should a covered contractor take if a covered contractor employee refuses to be vaccinated?

Answer Summary – If the recalcitrant worker has not requested an accommodation, and no such request is pending, then the guidance says the employer should resort to the terms of their employee handbooks or applicable  bargaining agreements for the appropriate disciplinary steps. It refers to the progressive discipline procedures used for Federal personnel for example. During the pendency of the applicable process, the guidance suggests, the worker’s continued presence on the covered workplace must be in compliance with safety protocols for unvaccinated workers.

Q: What steps should an agency take if a covered contractor does not comply with the requirements in the Task Force’s Guidance for Federal Contractors and Subcontractors?

Answer Summary – The answer says the agency should work with contractors who are trying in good faith to meet compliance challenges. On the other hand,  the answer suggests, if the contractor is not taking steps to comply, the agency should consider significant actions, such as contract termination.

Vaccination and Safety Protocols

Q:  If a corporate affiliate of a covered contractor does not otherwise qualify as a covered contractor, are the employees of that affiliate considered contractor employees subject to COVID-19 workplace safety protocols for Federal contractors established through the Task Force Guidance?

Answer Summary – The answer says that if the two entities are in a joint control relation with each other or a third party, then employees of the non-covered affiliate are considered contractor employees when working at a covered worksite.

Q: If the workplace where a covered contractors employees perform work on or in connection with a covered contract is a location owned, leased, or otherwise controlled by a corporate affiliate of a covered contractor that does not otherwise qualify as a covered contractor under Task Force guidance, is the workplace considered a covered contractor workplace?

Answer Summary – Again, assuming a control relationship among the entities, if an employee of a covered contractor is likely to be present during the term of the covered contract at the 3rd party site, then that site is considered a covered contract workplace.

Q: If a covered contractor can access a covered contractor employee’s vaccination documentation, consistent with relevant privacy laws, does the covered contractor need to require the employee to show or provide documentation?

Answer Summary – No, the answer says, if the contractor can access the documentation directly through precious documentation responses, an employer vaccination program record, or a state immunization database.

Q: Do all requests for accommodation need to be resolved by the covered contractor by the time the covered contractor’s employees begin work on a covered contract or at a covered workplace?

Answer Summary – No, the answer says, if the accommodation requests are pending at that time, then the employer must require during the pendency of the resolution of the accommodation that the employee follow the workplace safety protocols for employees who are not fully vaccinated as per the SFW Guidance.

Q: When a covered contractor’s employees are not vaccinated because a covered contractor has provided the employee with an accommodation, what workplace safety protocols must the employee follow while in a Federal workplace?

Answer Summary – The affected agency will determine what protocols apply at that Federal worksite for unvaccinated workers. In general, the answer refers to masking, social distancing and testing procedures. However, the answer says it will amount to a fact-specific assessment by the agency with respect to the individual work circumstances, and notes that some circumstances may not be amenable to any such accommodation.  In any case, the answer states contractors that have unvaccinated workers onsite at a covered Federal worksite must notify the agency contracting officer of which employees have received an accommodation in lieu of vaccination to facilitate that fact-based determination.

Litigation Update

The Vaccination EO 14042 is under challenge by the State of Florida in a lawsuit for a temporary and permanent injunction filed in the US District Court for the Middle District of Florida last week. (State of Florida v. Bill Nelson, Administrator of NASA et al, 8:21-cv-2524, USDC MDFla., Tampa Division).

The complaint is a broad and vigorous challenge to the Administration’s use of the Federal Property and Administrative Services Act preamble authority to prescribe regulations to promote economy and efficiency of Federal contracts. The suit challenges that as a pretext to pursue otherwise inappropriate Federal public health policy.  The suit also challenges the SFW Task Force and OMB exercise of regulatory authority over the ordinary course of procurement regulations vested in the Federal Acquisition Regulatory Council.  The suit asserts the State of Florida’s direct interest in its various Federal contracts with NASA and GSA.

MCAA will report details of the litigation and the scope of any injunction when and if it is issued during the preliminary compliance period.  Also, as to the various compliance procedures and judgments contained in the SFW Task Force Guidance, employers should be aware that generally, collective bargaining over the effects of a new Federal law or regulation is a mandatory subject of bargaining and is not subject to unilateral management implementation. Also, the summary answers above are meant for general communication. The full and complete text of the Guidance should be consulted for complete compliance analysis and planning. However, it also should be noted that some flexible rule of reason compliance standards are suggested in the new FAQs.

OSHA Emergency Temporary Standard Released

On November 4, 2021, the OSHA Emergency Temporary Standard applicable to all employers with 100 or more employees was released. This ETS is separate and apart from the EO 14042 vaccination mandate that applies to Federal prime contractors and subcontractors irrespective of employment  numbers.  The OSHA ETS expressly states that its requirements do not apply to workplaces covered by EO 14042 mandates, as follows:

Which employers are covered by the ETS?

  • Private employers with 100 or more employees firm- or corporate-wide.
  • In states with OSHA-approved State Plans, state-and local-government employers, as well as private employers, with 100 or more employees will be covered by state occupational safety and health requirements.

Which workplaces are not covered by the ETS?

  • Workplaces covered under the Safer Federal Workforce Task Force COVID-19 Workplace Safety: Guidance for Federal Contractors and subcontractors; and
  • Settings where any employee provides healthcare services or healthcare support services when subject to the requirements of the Healthcare ETS (§ 1910.502).

White House Extends Vaccination Deadline Under EO 14042

Also, on November 4th release of the OSHA ETA, the White House briefing notice extended the vaccination deadline under EO 14042 to be concurrent with the ETS deadline – January 4, 2022 – beyond the original EO 14042 vaccination deadline of December 8, 2021, as follows:

Streamlining Implementation and Setting One Deadline Across Different Vaccination Requirements: The rules released today ensure employers know which requirements apply to which workplaces. Federal contractors may have some workplaces subject to requirements for federal contractors and other workplaces subject to the newly-released COVID-19 Vaccination and Testing ETS. To make it easy for all employers to comply with the requirements, the deadline for the federal contractor vaccination requirement will be aligned with those for the CMS rule and the ETS. Employees falling under the ETS, CMS, or federal contractor rules will need to have their final vaccination dose – either their second dose of Pfizer or Moderna, or single dose of Johnson & Johnson – by January 4, 2022. This will make it easier for employers to ensure their workforce is vaccinated, safe, and healthy, and ensure that federal contractors implement their requirements on the same timeline as other employers in their industries. And, the newly-released ETS will not be applied to workplaces subject to the federal contractor requirement or CMS rule, so employers will not have to track multiple vaccination requirements for the same employees.

OSHA Issues Highly Anticipated COVID-19 ETS

The Occupational Safety & Health Administration (OSHA) is issuing an Emergency Temporary Standard (ETS) on COVID-19.

Summary:

  1. Employers with 100 or more employees must ensure that each of their workers is fully vaccinated by January 4th, 2022 or test for COVID-19 on at least a weekly basis.
  2. Employers do not have to pay for COVID-19 tests under the OSHA ETS but may be required to pay under other laws or collective bargaining agreements (CBAs).
  3. Employers must provide paid-time for employees to get vaccinated and any sick leave for employees who get side effects starting on December 5, 2021.
  4. Unvaccinated employees must wear a face mask in the workplace starting on December 5th.
  5. Employers must remove from the workplace any employee who receives a positive COVID-19 test or is diagnosed with COVID-19.
  6. This ETS is effective immediately, although all aspects of the standard, other than testing, are enforceable starting Dec. 5th, 2021. Testing requirements become enforceable starting Jan 4th, 2022.

Additional details:

New Vaccination Requirement for Employers With 100 or More Employees: OSHA is issuing a COVID-19 Vaccination and Testing Emergency Temporary Standard (ETS) to require employers with 100 or more employees to:

  • Get Their Employees Vaccinated by January 4th and Require Unvaccinated Employees to Produce a Negative Test on at Least a Weekly Basis: All covered employers must ensure that their employees have received the necessary shots to be fully vaccinated – either two doses of Pfizer or Moderna, or one dose of Johnson & Johnson – by January 4th. After that, all covered employers must ensure that any employees who have not received the necessary shots begin producing a verified negative test to their employer on at least a weekly basis, and they must remove from the workplace any employee who receives a positive COVID-19 test or is diagnosed with COVID-19 by a licensed health care provider. The ETS lays out the wide variety of tests that comply with the standard. Given that vaccines are safe, free, and the most effective way for workers to be protected from COVID-19 transmission at work, the ETS does not require employers to provide or pay for tests. Employers may be required to pay for testing because of other laws or collective bargaining agreements. 
  • Pay Employees for the Time it Takes to Get Vaccinated: All covered employers are required to provide paid-time for their employees to get vaccinated and, if needed, sick leave to recover from side effects experienced that keep them from working. 
  • Ensure All Unvaccinated Employees are Masked: All covered employers must ensure that unvaccinated employees wear a face mask while in the workplace. 
  • Other Requirements and Compliance Date: Employers are subject to requirements for reporting and recordkeeping that are spelled out in the detailed OSHA materials available here. While the testing requirement for unvaccinated workers will begin after January 4th, employers must be in compliance with all other requirements – such as providing paid-time for employees to get vaccinated and masking for unvaccinated workers – on December 5th. The Administration is calling on all employers to step up and make these changes as quickly as possible.

Additional information on the OSHA ETS website

White House Lifts COVID-19 Travel Bans for Fully Vaccinated Travelers

On October 25, 2021, the White House revoked the prior COVID-19 travel restrictions and announced that as of November 8, 2021, international travelers traveling to the U.S. by air will be permitted to enter the U.S. if they:

  • Are fully vaccinated.
  • Can present evidence of a negative COVID-19 test taken within three days of their entry into the United States.
  • Agree to comply with public health precautions established by the Centers for Disease Control and Prevention (CDC). The CDC has published a list of vaccines that will be accepted as evidence of being fully vaccinated. (The list includes COVID-19 vaccines approved or authorized for emergency use by the U.S. Food and Drug Administration, including Pfizer-BioNTech, Moderna, and Johnson & Johnson / Janssen, as well as those listed for emergency use by the World Health Organization, such as AstraZeneca/Oxford).

To be clear, the announcement is still a modified travel ban (“Global Suspension and Limitation on Entry of Certain Individuals Who Are Not Fully Vaccinated Against COVID-19”). A failure to meet the requirements or an exemption will result in an international traveler being denied entry into the United States. The new modified ban will remain in effect until terminated by the President.

Exemptions

Limited exemptions exist for some travelers. Of note:

  • Minors who, based on their age and global vaccine availability for their age group, are not able to be vaccinated.
  • Noncitizens who are from countries where vaccine availability is limited (defined as less than 10% of the country’s total population being fully vaccinated, or as determined by the CDC) who seek to enter the United States on a nonimmigrant visa, except for a B-1 or B-2 visa.
  • Certain participants of clinical trials.
  • Persons granted an exemption by the CDC due to humanitarian or emergency reasons.
  • Persons who qualify for a National Interest Exemption as determined by the Department of Homeland Security, Secretary of State, Secretary of Transportation, or their designees.

Additionally, international travelers who are not fully vaccinated but permitted to enter the United States based on an exemption must agree to become fully vaccinated within 60 days of arrival or in a timeframe determined by the CDC and must provide proof of arrangements for becoming fully vaccinated after arrival, with some exceptions (sufficiently brief stay, among others). 

This means that travelers from regions previously subject to U.S. COVID travel bans (Brazil, China, India, Iran, Ireland, South Africa, the United Kingdom, and the Schengen Area) will now be able to enter the United States directly from those countries, so long as they meet the requirements for being fully vaccinated and can present evidence of a negative COVID-19 test taken within three days of their entry. This also means that minors, depending on their age, and travelers from countries with low vaccine availability (less than 10% full vaccination rate), may now be exempt from the travel bans.

U.S. to Lift COVID-19 Travel Ban to Allow Fully Vaccinated Travelers

On October 15, 2021, the White House announced that as of November 8, 2021, the COVID-19 travel restrictions for international travelers coming into the United States will be lifted for those who:

  • Are fully vaccinated.
  • Can present evidence of a negative COVID-19 test taken within three days of their entry into the United States.

The Centers for Disease Control and Prevention (CDC) has published a list of vaccines that will be accepted as evidence of being fully vaccinated. In short, the list of approved vaccines includes COVID-19 vaccines that have been approved or authorized for emergency use by the U.S. Food and Drug Administration:

  • Pfizer-BioNTech
  • Moderna
  • Johnson & Johnson / Janssen COVID-19 vaccines

The CDC has indicated that the guidance also applies to COVID-19 vaccines that have been listed for emergency use by the World Health Organization, such as AstraZeneca/Oxford. The CDC considers individuals to be fully vaccinated either two weeks after their second dose in a two-dose series, such as the Pfizer-BioNTech or Moderna vaccines, or two weeks after a single-dose vaccine, such as Johnson & Johnson’s Janssen vaccine.

COVID-19 testing requirements will remain in place for all airline travelers entering the United States, including U.S. citizens and fully vaccinated people. Travelers are required to present evidence of a negative COVID-19 test result from no more than three days before their entry into the United States or documentation of recovery from COVID-19 in the past three months before being permitted to board a flight to the United States. (For more information, see International Travel During COVID-19.)

Last week, the Department of Homeland Security (DHS) announced that the department will ease restrictions on entry into the United States for fully vaccinated travelers from Canada and Mexico in early November. The United States had imposed entry restrictions on border crossings with Canada and Mexico to limit nonessential travel since the start of the pandemic. The restrictions have been extended monthly. According to DHS Secretary Alejandro N. Mayorkas, the new rules will be implemented in phases, starting on November 8, 2021, to allow fully vaccinated travelers to cross the border for nonessential reasons, while unvaccinated travelers will only be allowed to enter for essential reasons. By early January 2022, DHS will require evidence of being fully vaccinated for travelers to cross the border into the United States for any reason. 

This most recent update means that travelers from regions previously subject to U.S. COVID travel bans (Brazil, China, India, Iran, Ireland, South Africa, the United Kingdom, and the Schengen Area) will now be able to enter the U.S. directly from those countries, so long as they meet the requirements for being fully vaccinated and have evidence of a negative COVID-19 test taken within three days of their entry into the United States. Land border crossings will now be easier for fully vaccinated travelers. 

DOWNLOAD ADVISORY

UA International Training Fund’s Preparedness Plan for In-Person Training

To MCAA members and JATC trustees considering attendance at events sponsored by the International Training Fund:

The Trustees of the UA International Training Fund (ITF) are committed to providing a safe and healthy workplace for all employees, instructors, and students participating in training events sponsored by the ITF.

To ensure safe and healthy training, the ITF has developed and adopted the following Preparedness Plan for in-person training that requires proof of COVID vaccination as a precondition of in-person participation.

The Plan applies to all in-person training events sponsored by the ITF in any location throughout the United States, including the upcoming Pipe Trades Training Conference, as well as Instructor Training Program, International Apprentice Contest and all Regional Training Classes.

Participants in any sponsored ITF event are responsible for complying with all aspects of the Plan.

VIEW PLAN

Biden Administration COVID Vaccination Mandates Update

Below are two items relevant to the Biden Administration’s recent COVID vaccination mandates.


The General Services Administration and the Civilian Agency Acquisition Council (CAAC) issued a broad Federal Acquisition Regulation Class Deviation for direct Federal Government Civilian Agency Contracting Officers to implement President Biden’s Executive Order 14042.

The executive order is for direct Federal prime contracts and subcontracts above the Simplified Acquisition (SAT) dollar threshold of $250,000. The CAAC letter reiterates that Federal agencies are required to include the clause – Far Part 52.223-99 Ensuring Adequate COVID-19 Safety Protocols For Federal Contractors, to be included in:

  • all contracts awarded on or after November 14, 2021 (based on solicitations issued before October 15, 2021) (including new orders issued on or after 10/14 under existing indefinite-delivery contracts based on solicitations issued before October 15th);
  • new solicitation issued on or after October 15, 2021, and new contracts (and indefinite delivery pacts) entered into based on those solicitations;
  • extensions or renewals or options on existing contracts exercised on or after October 15, 2021.

The CAAC Letter also “strongly encourages” (but does not require) Federal agencies to include the COVID-19 vaccination requirement clause in contracts that will be awarded before November 14th on solicitations issued before October 15th  and to include the requirements on prime and subcontracts under the $250,000 SAT.

The clause itself requires covered prime contractors and subcontractors to comply with all guidance, including guidance conveyed through Frequently Asked Questions, as amended during the performance of this contract, for contractor and subcontractor workplace locations published by the Safer Federal Workforce Task Force Guidance at https:www.safefederal workforce.gov/contractors/.

The clause incorporates automatic adoption of yet-to-be issued requirements published by the Federal SFW Task Force.

The clause also clarified that the prime contract flow-down of the requirements applies only to subcontracts above the SAT of $250,000, with the caveat of the strong suggestion of broader application noted above.

It remains to be determined what, if any, further guidance may be issued by the full Federal Acquisition Regulatory Council.

CAAC Letter


Frequently Asked Questions About Affordable Care Act Implementation Part 50, Health Insurance Portability and Accountability Act and Coronavirus Aid, Relief and Economic Security Act Implementation. (CCIIO OG MMRD 1808, October 4, 2021)  The Department of labor, Health and Human Services Administration and Department of Treasury revised and updated their FAQs on the ACA, HIPAA, and CARES Act implementation guidance to address health plan coverage of COVID vaccination expenses, the permissibility of allowing health plan wellness incentives for vaccinations, and the impermissibility of denying health plan eligibility and coverage to unvaccinated participants.

Revised FAQs Part 50

COVID-19 Workplace Safety Guidance for Federal Contractors and Subcontractors Issued September 24, 2021 by the Safer Federal Workforce Task Force

The Safer Federal Workforce (SFW) Task Force, established by President Biden in Executive Order 13991 (January 20, 2021), issued COVID-19 Safety Guidance on September 24, 2021, in furtherance of the Federal prime contractor and subcontractor vaccination mandate issued by the President in Executive Order (EO) 14042 on September 9, 2021. 

That EO also was accompanied by a Presidential order directing OSHA to create a similar (but not identical) vaccination and testing regime in an OSHA Emergency Temporary Standard that would cover all employers (irrespective of Federal contract status) with over 100 employees. And these parallel executive mandates operate in conjunction too with respect to COVID vaccination, testing and social distancing and masking rules that pertain to Federal agency personnel worksites, where covered private sector employers may be working.

Below is a digest of the SFW Task Force Guidance pertaining to direct Federal agency prime contractors and subcontractors (irrespective of employee numbers) at all lower tiers on covered Federal contracts. 

Contract Coverage

The Task Force Guidance requires COVID-19 vaccination of all Federal prime contractor and subcontractor personnel working on or in relation to direct Federal contracts with Federal agencies above the current Federal Simplified Acquisition Threshold of $250,000. It applies to contracts entered into on solicitations issued on or after October 14, 2021, and to contract extensions or options exercised on existing covered contracts issued on or after that date.

Regulatory Procedure

Coincident with release of the SFW Task Force Guidance, the OMB exercised its ratification of the regulatory purpose called for in EO 14042.

In a release dated September 24, 2021, Office of Management and Budget (OMB) Deputy Director for Management, Jason Miller, declared: “Pursuant to the order [EO14042], the Director of the Office of Management and Budget has determined that compliance by Federal contractors and subcontractors with the COVID-19 workplace safety protocols detailed in the Task Force’s Guidance will promote economy and efficiency in Federal contracting. These safeguards will decrease worker absence, reduce labor costs, and improve the efficiency of contractors and subcontractors performing work for the Federal government.”

The Guidance is now subject to regulatory action by the Federal Acquisition Regulatory (FAR) Council, which has until October 8, 2021, to issue FAR contract language implementing the Guidance, which is to be included in FAR contract solicitation and contract extensions and option renewals beginning on October 14, 2021. The requirements will apply to new contracts awarded on or after November 14, 2021. Covered employers and employees will have until no later than December 8, 2021, to become “fully vaccinated.”  After December 8th, all covered employees must be fully vaccinated on the first day of performance of a covered new contract, or extension or option on an existing covered contract. (As of this date, “fully vaccinated” means initial approved one- or two-shot regime – currently, booster shots are not included.)

Specific Requirements

The Guidance requires the following three primary elements:

  • Full vaccination of all covered employees. Exception noted only for narrowly defined legal accommodations. The Guidance says a covered contractor may be required [emphasis added] to provide an accommodation if the employee claims a medical/disability bar to vaccination or expressed opposition to vaccination based on a sincerely held religious belief. The type of accommodation is not spelled out. Testing is not specifically mentioned.
  • Masking and social distancing – The Guidance sets out specific masking and social distancing as applied to covered workplaces.
  • Appointment of specific compliance personnel – The Guidance requires covered employers to appoint specific compliance personnel to implement the requirements.

Employee Coverage

The Guidance covers both full and part time employees working on or in relation to covered contracts – in construction that would be the job site and off-site home office personnel. The vaccination requirement also applies to employees working at home who are employed to work on or in relation to the covered contract – masking and social distancing would not bear on that home work location.

The Guidance does not address the question of payment for the vaccine, or any time off for adverse physical reaction to the vaccination.  The Guidance does not offer regular weekly testing as an explicit alternative to testing or as an accommodation for valid exceptions.  Neither does the Guidance address paid time off for testing, if that is allowed as an acceptable accommodation, or payment for that testing. 

Some or all of these issues are present in the OSHA ETS development. MCAA has taken the position that paid time off for testing, if and when it may be allowed in lieu of vaccination, is entirely counterproductive to the goal of maximizing vaccination of the entire workforce. Both paid time off for testing, and employer pay for testing, is a disincentive to widespread vaccination acceptance – which is the goal of the recent Executive actions, and fully in line with the UA/MCAA Message on vaccination.

Specifics on Vaccines

The Guidance requires covered employees to be “fully vaccinated” by the effective date of performance. “Fully vaccinated” is defined as two weeks after a one- or two-shot course of a currently  approved vaccine under US Food and Drug Administration (FDA) or World Health Organization approvals – set out as: Pfizer-BioNTech, Moderna, Johnson & Johnson/Jansen, AstraZeneca/Oxford, and one trial vaccine candidate – Novavax COVID-19.

The vaccination rules apply to outdoor work. Prior COVID infection or proof of COVID antibodies is not a permissible exception. Worker attestation of vaccination is not acceptable documentation. Documentation of vaccination is to be presented in provider vaccination cards or vaccination records from health department records.

Other Potential Issues and Clarifications

The Frequently Asked Questions (FAQ) section of the Guidance raises some key complicating issues and the need for ongoing regulatory clarification.

For example, Question 16 of the Guidance Frequently Asked Questions (p. 12 of the Guidance, asks:  If the Safer Federal Workforce Task Force updates the Guidance to add new requirements, do those requirements apply to existing contracts?  A.  Yes.  Covered contractors are required to, for the duration of the contract, comply with all Task Force Guidance for contractor of subcontractor workplace locations, including any new Guidance where the OMB Director approves the Guidance and determines that adherence to the Guidance will promote economy and efficiency in Federal contracting. The Task Force and OMB plans to ensure any workplace safety protocols reflect what is necessary to decrease the spread of COVID-19.”

This element of the Guidance raises the current question of whether and how the Government agency should equitably compensate contractors for COVID impact costs, imposed either before or after contract award. MCAA has been advocating for a COVID impact cost equitable adjustment mandate from OMB to Contracting Officers on existing contracts entered into pre-COVID and performed post- COVID. MCAA also is pressing for a FAR COVID cost escalation adjustment contingency clause in all contracts going forward to avoid across-the-board bid contingencies anticipating just such post-award added COVID compliance mandates on Federal contract and subcontract work performance.

These issues too are raised in Question 20 – Can a covered contractor comply with the workplace safety requirements from the Occupational Safety and  Health Administration, including pursuant to any forthcoming Emergency Temporary Standard related to COVID-19, instead of the requirements of the guidance?  A. No. Covered contractors must comply with the requirements set forth in this Guidance regardless of whether they are subject to other workplace safety standards.

This answer sets up the same issues with regard to paid time off for testing.  If the OSHA ETS permits testing in lieu of vaccination (the Task Guidance does not permit testing in lieu of vaccination) – and then should go on to require that OSHA ETS covered employers (100+ employees) must  pay for the testing and time off for testing, then the question is would that cost be recoverable under the FAR COVID cost contingency clause (if there is one in the FAR contract) since it’s required by OSHA – not the Federal Contract Guidance directly. Ideally, the Federal contracting COVID cost recovery equitable adjustment measure MCAA is pressing for should – in the extension of the equitable recovery – permit recovery of the OSHA ETS costs incurred by covered Federal prime contractors and subcontractors.

Note: The Guidance encourages agencies to apply the requirements to contracts for products (currently not covered) and to otherwise covered contract actions below the $250,000 threshold. It should be noted that the Guidance applies to all covered firms irrespective of employment levels; the OSHA ETS has a 100 plus employee threshold. Regular testing in lieu of vaccination is not an option under the Guidance, but it is under the OSHA ETS executive action. Who pays for that testing and time to take the tests remain to be determined in the OSHA rulemaking. Certainly, paid time off for testing in lieu of vaccination would not be in line with the regulatory rationale under the Federal Property and Administrative Services Act underlying the Guidance – promoting economy and efficiency of Federal contract performance.

Enforcement

The enforcement regime for the COVID-19 vaccination mandate on Federal contracts is the same as it is for any other FAR mandate and flow-down clause.  In the first instance the Contracting Officer has oversight of the prime contractor performance, and the flow-down to subs and sub-subs is left to the lower tier parties. This is stated in the Guidance FAQ as follows: 

“Q. What is the prime contractor’s responsibility for verifying subcontractors are complying with the mandate? A. The prime contractor is responsible for ensuring that the required clause is incorporated into its first-tier subcontracts in accordance with the implementation schedule set forth in Section 6 of the order [EO 14042 is the Effective Date schedule]. When the clause is incorporated into a subcontract, a subcontractor is required to comply with this Guidance and the workplace protocols detailed herein. Additionally, first-tier subcontractors are expected to flow the clause down to their lower-tier subcontractors in a similar fashion so that accountability for compliance is fully established throughout the Federal contract supply chain for covered subcontractor employees and workplaces at all tiers through application of the clause.”

Note: The Guidance does not require flow-down to material supply (products) providers on covered contracts. There is some speculation that the FAR regulations might do that. Also, further specificity on some of these issues might come out in the FAR regulations due October 8.

Below are links to the SFW Task Force Guidance (including the Frequently Asked Question elaboration) and related OMB announcement of ratification.

MCAA will continue to track and report regulatory developments on these issues affecting MCAA member forms as developments warrant.

MCAA will be presenting a webinar on these issues shortly after the FAR regulations are released. Watch MCAA.org for an announcement.

MCAA’s Safety & Health Initiative Highlights OSHA & CMS Response to the Vaccination Mandates

MCAA’s Safety & Health Initiative explains how the Occupational Safety & Health Administration (OSHA) and the Centers for Medicare & Medicaid Services (CMS) are responding to the new vaccination mandates projected to affect two-thirds of American workers.

Last week the White House announced a national strategy to combat the COVID-19 pandemic. During the speech, President Biden announced two Executive Orders and certain administrative actions that will increase mandates for vaccination in both government and private workplaces. Altogether, the vaccine requirements announced on September 9, 2021, are projected to affect about 100 million Americans, or two-thirds of American workers.

What You Need to Know

  • Vaccination Requirements for Employers with 100+ Employees – OSHA is developing an Emergency Temporary Standard (ETS) to require all employers with 100 or more employees to ensure their workforce is fully vaccinated or require any workers who remain unvaccinated to produce a negative test result on at least a weekly basis before coming to work.
  • Vaccination Requirements for Federal Employees and Federal Contractors – Directs agencies to implement a program to require COVID-19 vaccination for all Federal employees by November 22, 2021.
  • Vaccination Requirements for Health Care Facilities – The Centers for Medicare & Medicaid Services (CMS) will require COVID-19 vaccinations for workers in most health care settings.

See the full memo, provided by our consultants at Alston & Bird, for the basic facts and an outline of the Biden Administration Executive Actions last week.